Financials

Signet Exceeds Expectations With a Strong Q3

FinancialsDec 05, 2019

Signet Exceeds Expectations With a Strong Q3

Same-store sales rose at all U.S. mall-based banners while online sales posted double-digit growth.

2018_Piercing-Pagoda.jpg
Signet Jewelers-owned Piercing Pagoda posted its sixth consecutive quarter of double-digit growth in Q3, with same-store sales rising 12 percent.

Akron, Ohio—Signet Jewelers Ltd. exceeded expectations in the third quarter, as comps rose at all U.S. mall-based banners and online sales posted double-digit growth.

In the third quarter ended Nov. 2, Signet’s same-store sales rose 2.1 percent year-over-year.

E-commerce sales were up 11 percent to $139.9 million, and accounted for 12 percent of total sales, up from 11 percent a year ago.

Brick-and-mortar same-store sales grew 1 percent.

Total sales reached $1.19 billion, essentially flat year-over-year on a both a reported and constant-currency basis.

Signet also reported a smaller-than-expected loss in the quarter, $43.7 million, causing its shares to rise 8 percent in pre-market trading.

It was the retailer’s North American chains—particularly Piercing Pagoda—and online sales that drove the increase while U.K. stores struggled due to Brexit, with comps dropping 5 percent, executives said on Thursday morning’s earnings call.

North America same-store sales were up 3 percent in the quarter. Average transaction value inched up 1 percent while the number of transactions increased 3 percent.

Kay and Jared stores held a lot of clearance sales in the third quarter, which ultimately impacted gross margin, though Chief Financial Officer Joan Hilson noted on the call, “Underneath that, we are pleased by the performance of new product.”

Signet’s total GAAP gross margin was $367.7 million, or 31 percent of sales, down 20 basis points year-over-year.

The retailer’s top performer in the third quarter was James Allen, which posted a 16 percent sales increase, followed by Piercing Pagoda at 12 percent.

CEO Gina Drosos said Q3 marked Piercing Pagoda’s sixth consecutive quarter of double-digit growth.

In addition, the ear piercing chain opened 11 new kiosks in “top-performing malls” in the period and launched its first advertising campaign.

Kay Jewelers saw same-store sales increase 4 percent, with the “Center of Me” collection, a line of Hallmark-branded jewelry, and Adrianna Papell bridal among the top sellers.

Comps at Zales were up 3 percent, due in part to the new Marilyn Monroe collection as well as the Disney-licensed “Frozen 2” and “Maleficent” lines.

Jared the Galleria of Jewelry (down 3 percent), Canadian chain Peoples (down 4 percent) and regional banners (down 16 percent) all posted same-store sales declines.

On Thursday’s call, Drosos said Signet has improved the effectiveness of its advertising spend, particularly by using data analytics to target customers online, and adopted a “mobile-first” approach to online advertising.

RELATED CONTENT: Mobile Shopping Emerges as an Early Holiday Winner

She

said the company launched its holiday marketing in the third quarter in order to begin driving awareness earlier.

Drosos also mentioned Signet’s efforts to improve the in-store experience and focus on services, which she called “an important part of our long-term strategy.”

Following a limited test run, Signet is now doing ear piercing in more than 400 Kay Jewelers stores.

It’s also ramping up its repair business across all banners.

Drosos said this coming weekend, the retailer is holding “Get Your Sparkle On” events in Kay, Jared and Zales stores. Customers are given a free jewelry cleaning and 10 percent off repair services.

Despite a relatively strong Q3, Signet still expects to post a same-store sales decline for the fiscal year of 1 to 2 percent, with total sales of $6.01 billion to $6.05 billion.

“Our financial guidance embeds the progress we have seen year to date balanced with our expectation for a competitive retail holiday environment,” as well as a shorter holiday season and continued impact from Brexit in the U.K., Drosos said.

As announced earlier this year, Signet will close 150 stores this fiscal year and open 35. Counted among the openings are some mall stores that are being moved to off-mall locations.

Net selling square footage will decline about 3 percent as a result of the closures.

The retailer said Thursday that it has closed 86 stores in the fiscal year to date.

Since FY 2018, Signet has reduced the size of its store base by 12 percent. Its store count as of Nov. 2 stands at 3,274: 2,813 locations in North America and 461 in the U.K.

The retailer is exiting failing malls and “simplifying its portfolio” by eliminating most of its regional banners, stores like JB Robinson Jewelers, Belden Jewelers and Gordon’s Jewelers.
Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

Image from PGI USA Platinum Born campaign
MajorsOct 23, 2026
PGI USA Set to Close at Year’s End

The closure is part of a global restructuring that also includes PGI winding down its operations in Japan, South Korea, and Hong Kong.

Rachel Chalchinsky of Color Source Gems Survivor Tribute Ring
SourcingOct 23, 2026
Rachel Chalchinsky’s ‘Survivor Tribute’ Ring

The ring, our Piece of the Week, was designed by eight-year breast cancer survivor Rachel Chalchinsky of Color Source Gems.

Jewelers of America new logo
TechnologyOct 23, 2026
JA Unveils New Website, Logo

The website offers enhanced member benefit access, industry directories, educational resources, a job board, and access to the MJSA Journal.

DeBeersICONS_TITLE1_CUSTOMCONTENT_1872x1052 (1).jpg
Brought to you by
A Diamond Is Forever Launches 2026 Holiday Campaign Championing Natural Diamonds

A Diamond Is Forever's holiday campaign reimagines natural diamond icons for a new generation celebrating individuality.

Stock image of crime scene tape and police cars
CrimeOct 22, 2026
Jeweler Shot and Killed in His Suburban Cincinnati Store

Tara Sinchuri was the owner of Everest Jewels in Fairfield, Ohio, and a father of three. He was found dead in his store on Tuesday.

Weekly QuizOct 22, 2026
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Verdura cuffs
MajorsOct 22, 2026
Neiman Marcus Has Gifts for the Jewelry Lover Who Has Everything

Bespoke experiences from Buccellati and Verdura are on the retailer’s 2026 “Fantasy Gifts” list.

JIS Fall 2026 jewelry
Events & AwardsOct 22, 2026
JIS Fall 2026 Reports Record-Breaking Attendance

The number of participants at the fall show was up 12 percent.

lab channel btyb 0926.png
Brought to you by
Open an Account, Get $50 Off Your First Order. No Code Needed.

Built on Relationships. Refined by Craft.

John Hardy Billie Eilish & Finneas Collection Campaign Imagery
CollectionsOct 22, 2026
Billie Eilish, Finneas Co-Design Collection for John Hardy

The Academy and Grammy award-winning siblings have collaborated with John Hardy on a new jewelry line inspired by their personal style.

Graphic for episode 10 of the My Next Question podcast
PodcastsOct 21, 2026
Episode 10: This Episode Is Haunted 

Diana Singer shared the stories of two “cursed” diamonds on this month’s podcast, which was inexplicably riddled with technical issues.

Gardner Collier Jewelry store in Kirksville Missouri
IndependentsOct 21, 2026
Gardner-Collier Jewelry to Close After 9 Decades in Business

The family-owned jeweler has three locations across Missouri and Iowa.

Underground shaft at the Venetia diamond mine
SourcingOct 21, 2026
Venetia Mines Final Carats Ahead of 2-Year Shutdown

The De Beers-owned diamond mine in South Africa is being put on ice as part of a round of previously announced cost-cutting measures.

Off-White Jewelry Collection Imagery
CollectionsOct 21, 2026
Helzberg, Nordstrom Carrying New Jewelry Collection From Off-White

The collection centers designs with clean geometric lines, chunky sculptural pieces, and recognizable details from the luxury fashion brand.

Gemfields rubies
SourcingOct 21, 2026
Gemfields’ Mixed-Quality Ruby Auction Earns $52M

The miner said it saw particularly strong prices for larger, fine-quality rubies at the sale.

Stock image of police cars with lights on
CrimeOct 20, 2026
Security Guard Charged With Murder in Shooting at Texas Mall

The guard opened fire on a man who was smashing a jewelry display case at La Gran Plaza in Fort Worth last week, police said.

David Gardner’s Jewelers interior
IndependentsOct 20, 2026
David Gardner’s Jewelers Unveils Newly Expanded, Revamped Showroom

The Texas jeweler added 2,000 square feet to its reimagined showroom, complete with a new design studio and an event space.

Kylie Jenner Fantasy Bra Victoria’s Secret Fashion Show
SourcingOct 20, 2026
The $50M Victoria’s Secret ‘Fantasy Bra’ By The Numbers

Jacob & Co.'s diamond masterpiece is the most expensive Fantasy Bra ever worn on the Victoria’s Secret Fashion Show runway.

Mignon Faget Atelier Collection Campaign Imagery
CollectionsOct 20, 2026
Mignon Faget’s Collection Chooses Handmade Over AI

The “Atelier” collection was inspired by the tools, rituals, and objects in an artist’s studio as a quiet rebuttal to an automated world.

 Rio Grande engagement ring and band
MajorsOct 19, 2026
The Knot to Acquire Rival Wedding Planning Platform Zola

The pending acquisition is an “exciting opportunity” for wedding vendors to grow their business, said The Knot Worldwide’s CEO.

The Secret Gems Thailand
SourcingOct 19, 2026
Jewelry Design Competition Show Airs in Thailand

"The Secret Gems" features eight Thai jewelry brands paired with a team of young craftspeople who create jewelry together to win challenges.

John Hardy Modern Talisman Collection Campaign Imagery
CollectionsOct 19, 2026
John Hardy Enters the Medallion Chat With Talisman Collection

The brand’s “Modern Talisman” capsule collection introduces pendants inspired by the mythology, natural world, and spiritual ethos of Bali.

Collage of independent jewelers celebrating their 100th anniversary in 2026
IndependentsOct 19, 2026
The Stories of 5 Jewelers Celebrating Their Centennials in 2026

Independent jewelers from New Mexico to New Jersey answer the question: What has kept your store in business for 100 years?

Hand holding shopping bags
SurveysOct 16, 2026
How Inflation, Gas Prices Will Affect Holiday Sales

The NRF is expecting holiday sales to increase this year, but consumers and retailers alike are facing Grinch-like headwinds.

Christina Puchi Gemstone Earrings
CollectionsOct 16, 2026
Christina Puchi’s Earrings Hold the Universe

Our Piece of the Week gathers the planets, represented by a variety of colored gemstones, in a pair of 14-karat yellow gold earrings.

Reeds Jewelers Fayetteville
IndependentsOct 16, 2026
Reeds Jewelers Expands, Relocates Flagship

The New York-based jeweler is moving its Amherst flagship store to a larger location in nearby Snyder.

Graff USA Executive Vice President Katy Chen
MajorsOct 16, 2026
Katy Chen Appointed Executive Vice President of Graff USA

Chen, who worked at Cartier and Tiffany & Co., will lead retail sales and operations for the luxury jeweler’s 11 U.S. stores.

Elise & Amy Greenberg
IndependentsOct 15, 2026
Retailer Hall of Fame 2026: Amy and Elise Greenberg

For 40 years, sisters Amy and Elise Greenberg have helmed their 126-year-old family business, leading with appreciation and integrity.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy